UH-OH.It’s the end of ad inventory as you know it (and how you can still feel fine).Ian Schafer, CEO & Founder,March 1, 2011

Heckle me @ischafer.

Brands are pulling agencies in directions that will force them to move into territory that will be dangerous to the traditional online inventory model.

“Engagement” isn’t just gaining momentum.It’s gaining a more significant share of spending.

The good news: There is still time to lead.

The bad news: Demands for “quality engagement” must be met.

Engagement is more difficult to buy, and more difficult to sell.

Online branding may soon not have a home.

We are waking up to the fact that “branding” is difficult to measure.

But there is promise for “connections”.

Impressions will be evaluated upon how hard they work.

“Inventory” is headed into some scary territory as buyers seek ultimate efficiency..

Inventory will become marginalized.

Automation will further commoditize inventory unless targeting compensates for it.

Lack of inventory scarcity will force advertisers to continually attempt to hack attention through other means.

Platforms are gaining power.And it’s changing everything.

More time is spent “using” platforms than “reading” websites.

Platforms like Facebook, Twitter, Foursquare and Zynga are leading the charge in experimenting with new ways to engage.

It’s no longer just about adding value to consumers – it’s about adding utility and enhancing experiences.

TOO COMMODITIZED

TOO SPECIALIZEDTOO INEXPENSIVE

WHERE THE GOOD STUFF IS GOING

“Strangely enough, it seems that the more information that is made available to us, the less well informed we become.

Decisions become harder to make, and our world appears more confusing than ever.”

Jeremy Rifkin, Entropy: A New WorldView, The Viking Press, 1980

“Mo’ money, mo’ problems.”

P. Diddy

Can ad impressions withstand increasing ROI demands, falling CPMs, and even more measurement proxies?

Engagement models are making progress. Develop your own.

Be aware of inventory polarity and marginalization, and embrace or reconfigure.

The platform era is here. Play nicely with others.

Agency evolution is going to impact the definition, delivery, and sale of “inventory”. Figure out how to sell to new breeds.

Effectively define and measure engagement or be left behind.

Those that are most adaptableto change will survive.

THANKS.www.deepfocus.net@deepfocus

www.ianschafer.com@ischafer